Strategem Capital Corporation
TSX VENTURE : SGE

Strategem Capital Corporation

December 19, 2008 17:47 ET

Strategem Capital Corporation Warns That ABCP Write-Off May Be Necessary

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 19, 2008) - Strategem Capital Corporation (the "Company" or "Strategem") (TSX VENTURE:SGE) today warned that it may have to write-off the balance of its Asset Backed Commercial Paper ("ABCP") at year-end. The company owns ABCP with a face value of $6,364,224. Management had estimated the fair value of the company's ABCP to be $1,239,277 at Sept. 30, 2008.

The ABCP has been the subject of a restructuring process, led by a committee of 17 financial institutions (the "Committee"), since August 2007. However, the Committee has been unable to reach agreement with the parties involved, including some non-Canadian banks which are threatening to abandon the process.

The Government of Canada stated today that it may provide support to allow the process to complete. The Company welcomes the government involvement but cautions readers that, if the restructuring is not successful, the ABCP will become subject to collateral calls from various entities and may lose any remaining value.

The Company also emphasizes that there is little information available as to the underlying assets behind the ABCP, and therefore the instruments are difficult to value. If the ABCP is restructured it is possible that it will carry low ratings or be illiquid. Readers are warned that the actual amount realized could differ significantly from Company estimates.

About Strategem Capital

Strategem Capital Corporation is a publicly-traded merchant bank specializing in the development of emerging companies with above average growth potential. The current focus is on companies that explore and develop precious or base metals.

This release and prior releases are available on the Company's Internet web site located at www.strategemcapital.com.

BY ORDER OF THE BOARD OF DIRECTORS

Kenneth W. Morgan, CA, CPA, President, CEO and Director

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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